Correlation Between Voya Bond and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Voya Solution at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Voya Bond and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Bond Index and Voya Solution 2060, you can compare the effects of market volatilities on Voya Bond and Voya Solution and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Voya Bond with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Voya Solution.
Diversification Opportunities for Voya Bond and Voya Solution
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Voya is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Solution 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2060 and Voya Bond is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Voya Bond Index are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2060 has no effect on the direction of Voya Bond i.e., Voya Bond and Voya Solution go up and down completely randomly.
Pair Corralation between Voya Bond and Voya Solution
Assuming the 90 days horizon Voya Bond Index is expected to generate 0.07 times more return on investment than Voya Solution. However, Voya Bond Index is 15.38 times less risky than Voya Solution. It trades about -0.05 of its potential returns per unit of risk. Voya Solution 2060 is currently generating about -0.3 per unit of risk. If you would invest 902.00 in Voya Bond Index on August 28, 2024 and sell it today you would lose (3.00) from holding Voya Bond Index or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Solution 2060
Performance |
| Timeline |
| Voya Bond Index |
| Voya Solution 2060 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya Bond and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Voya Solution
The main advantage of trading using opposite Voya Bond and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Voya Solution can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Voya Solution will offset losses from the drop in Voya Solution's long position.| Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Emerging Markets |
| Voya Solution vs. Firsthand Technology Opportunities | Voya Solution vs. Janus Global Technology | Voya Solution vs. Allianzgi Technology Fund | Voya Solution vs. Science Technology Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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